106TH CONGRESS

2D SESSION S. 1452

AN ACT

To modernize the requirements under the National Manufactured Housing Construction and Safety Standards Act

of 1974 and to establish a balanced consensus process

for the development, revision, and interpretation of Federal construction and safety standards for manufactured

homes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REF4 ERENCES.

5 (a) SHORT TITLE.—This Act may be cited as the

6 ‘‘Manufactured Housing Improvement Act of 2000’’.
2

S 1452 ES

1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title; table of contents; references.

Sec. 2. Findings and purposes.

Sec. 3. Definitions.

Sec. 4. Federal manufactured home construction and safety standards.

Sec. 5. Abolishment of National Manufactured Home Advisory Council; manufactured home installation.

Sec. 6. Public information.

Sec. 7. Research, testing, development, and training.

Sec. 8. Fees.

Sec. 9. Dispute resolution.

Sec. 10. Elimination of annual reporting requirement.

Sec. 11. Effective date.

Sec. 12. Savings provisions.

3 (c) REFERENCES.—Whenever in this Act an amend4 ment is expressed in terms of an amendment to, or repeal

5 of, a section or other provision, the reference shall be con6 sidered to be made to that section or other provision of

7 the National Manufactured Housing Construction and

8 Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).

9 SEC. 2. FINDINGS AND PURPOSES.

10 Section 602 (42 U.S.C. 5401) is amended to read as

11 follows:

12 ‘‘SEC. 602. FINDINGS AND PURPOSES.

13 ‘‘(a) FINDINGS.—Congress finds that—

14 ‘‘(1) manufactured housing plays a vital role in

15 meeting the housing needs of the Nation; and

16 ‘‘(2) manufactured homes provide a significant

17 resource for affordable homeownership and rental

18 housing accessible to all Americans.

19 ‘‘(b) PURPOSES.—The purposes of this title are—
3

S 1452 ES

1 ‘‘(1) to facilitate the acceptance of the quality,

2 durability, safety, and affordability of manufactured

3 housing within the Department of Housing and

4 Urban Development;

5 ‘‘(2) to facilitate the availability of affordable

6 manufactured homes and to increase homeownership

7 for all Americans;

8 ‘‘(3) to provide for the establishment of prac9 tical, uniform, and, to the extent possible, perform10 ance-based Federal construction standards for man11 ufactured homes;

12 ‘‘(4) to encourage innovative and cost-effective

13 construction techniques for manufactured homes;

14 ‘‘(5) to protect owners of manufactured homes

15 from unreasonable risk of personal injury and prop16 erty damage;

17 ‘‘(6) to establish a balanced consensus process

18 for the development, revision, and interpretation of

19 Federal construction and safety standards for manu20 factured homes and related regulations for the en21 forcement of such standards;

22 ‘‘(7) to ensure uniform and effective enforce23 ment of Federal construction and safety standards

24 for manufactured homes; and
4

S 1452 ES

1 ‘‘(8) to ensure that the public interest in, and

2 need for, affordable manufactured housing is duly

3 considered in all determinations relating to the Fed4 eral standards and their enforcement.’’.

5 SEC. 3. DEFINITIONS.

6 (a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is

7 amended—

8 (1) in paragraph (2), by striking ‘‘dealer’’ and

9 inserting ‘‘retailer’’;

10 (2) in paragraph (12), by striking ‘‘and’’ at the

11 end;

12 (3) in paragraph (13), by striking the period at

13 the end and inserting a semicolon; and

14 (4) by adding at the end the following:

15 ‘‘(14) ‘administering organization’ means the

16 recognized, voluntary, private sector, consensus

17 standards body with specific experience in developing

18 model residential building codes and standards in19 volving all disciplines regarding construction and

20 safety that administers the consensus standards

21 through a development process;

22 ‘‘(15) ‘consensus committee’ means the com23 mittee established under section 604(a)(3);

24 ‘‘(16) ‘consensus standards development proc25 ess’ means the process by which additions, revisions,
5

S 1452 ES

1 and interpretations to the Federal manufactured

2 home construction and safety standards and enforce3 ment regulations shall be developed and rec4 ommended to the Secretary by the consensus com5 mittee;

6 ‘‘(17) ‘primary inspection agency’ means a

7 State agency or private organization that has been

8 approved by the Secretary to act as a design ap9 proval primary inspection agency or a production in10 spection primary inspection agency, or both;

11 ‘‘(18) ‘design approval primary inspection agen12 cy’ means a State agency or private organization

13 that has been approved by the Secretary to evaluate

14 and either approve or disapprove manufactured

15 home designs and quality control procedures;

16 ‘‘(19) ‘installation standards’ means reasonable

17 specifications for the installation of a manufactured

18 home, at the place of occupancy, to ensure proper

19 siting, the joining of all sections of the home, and

20 the installation of stabilization, support, or anchor21 ing systems;

22 ‘‘(20) ‘monitoring’—

23 ‘‘(A) means the process of periodic review

24 of the primary inspection agencies, by the Sec25 retary or by a State agency under an approved
6

S 1452 ES

1 State plan pursuant to section 623, in accord2 ance with regulations recommended by the con3 sensus committee and promulgated in accord4 ance with section 604(b), which process shall be

5 for the purpose of ensuring that the primary in6 spection agencies are discharging their duties

7 under this title; and

8 ‘‘(B) may include the periodic inspection of

9 retail locations for transit damage, label tam10 pering, and retailer compliance with this title;

11 and

12 ‘‘(21) ‘production inspection primary inspection

13 agency’ means a State agency or private organiza14 tion that has been approved by the Secretary to

15 evaluate the ability of manufactured home manufac16 turing plants to comply with approved quality con17 trol procedures and with the Federal manufactured

18 home construction and safety standards promulgated

19 under this title.’’.

20 (b) CONFORMING AMENDMENTS.—The National

21 Manufactured Housing Construction and Safety Stand22 ards Act of 1974 (42 U.S.C. 5401 et seq.) is amended—

23 (1) in section 613 (42 U.S.C. 5412), by striking

24 ‘‘dealer’’ each place it appears and inserting ‘‘re25 tailer’’;
7

S 1452 ES

1 (2) in section 614(f) (42 U.S.C. 5413(f)), by

2 striking ‘‘dealer’’ each place it appears and inserting

3 ‘‘retailer’’;

4 (3) in section 615 (42 U.S.C. 5414)—

5 (A) in subsection (b)(1), by striking ‘‘deal6 er’’ and inserting ‘‘retailer’’;

7 (B) in subsection (b)(3), by striking ‘‘deal8 er or dealers’’ and inserting ‘‘retailer or retail9 ers’’; and

10 (C) in subsections (d) and (f), by striking

11 ‘‘dealers’’ each place it appears and inserting

12 ‘‘retailers’’;

13 (4) in section 616 (42 U.S.C. 5415), by striking

14 ‘‘dealer’’ and inserting ‘‘retailer’’; and

15 (5) in section 623(c)(9), by striking ‘‘dealers’’

16 and inserting ‘‘retailers’’.

17 SEC. 4. FEDERAL MANUFACTURED HOME CONSTRUCTION

18 AND SAFETY STANDARDS.

19 Section 604 (42 U.S.C. 5403) is amended—

20 (1) by striking subsections (a) and (b) and in21 serting the following:

22 ‘‘(a) ESTABLISHMENT.—

23 ‘‘(1) AUTHORITY.—The Secretary shall estab24 lish, by order, appropriate Federal manufactured
8

S 1452 ES

1 home construction and safety standards, each of

2 which—

3 ‘‘(A) shall—

4 ‘‘(i) be reasonable and practical;

5 ‘‘(ii) meet high standards of protec6 tion consistent with the purposes of this

7 title; and

8 ‘‘(iii) be performance-based and objec9 tively stated, unless clearly inappropriate;

10 and

11 ‘‘(B) except as provided in subsection (b),

12 shall be established in accordance with the con13 sensus standards development process.

14 ‘‘(2) CONSENSUS STANDARDS AND REGU15 LATORY DEVELOPMENT PROCESS.—

16 ‘‘(A) INITIAL AGREEMENT.—Not later

17 than 180 days after the date of enactment of

18 the Manufactured Housing Improvement Act of

19 2000, the Secretary shall enter into a contract

20 with an administering organization. The con21 tractual agreement shall—

22 ‘‘(i) terminate on the date on which a

23 contract is entered into under subpara24 graph (B); and
9

S 1452 ES

1 ‘‘(ii) require the administering organi2 zation to—

3 ‘‘(I) recommend the initial mem4 bers of the consensus committee

5 under paragraph (3);

6 ‘‘(II) administer the consensus

7 standards development process until

8 the termination of that agreement;

9 and

10 ‘‘(III) administer the consensus

11 development and interpretation proc12 ess for procedural and enforcement

13 regulations and regulations specifying

14 the permissible scope and conduct of

15 monitoring until the termination of

16 that agreement.

17 ‘‘(B) COMPETITIVELY PROCURED CON18 TRACT.—Upon the expiration of the 4-year pe19 riod beginning on the date on which all mem20 bers of the consensus committee are appointed

21 under paragraph (3), the Secretary shall, using

22 competitive procedures (as such term is defined

23 in section 4 of the Office of Federal Procure24 ment Policy Act), enter into a competitively

25 awarded contract with an administering organi-
10

S 1452 ES

1 zation. The administering organization shall ad2 minister the consensus process for the develop3 ment and interpretation of the Federal stand4 ards, the procedural and enforcement regula5 tions, and regulations specifying the permissible

6 scope and conduct of monitoring, in accordance

7 with this title.

8 ‘‘(C) PERFORMANCE REVIEW.—The

9 Secretary—

10 ‘‘(i) shall periodically review the per11 formance of the administering organiza12 tion; and

13 ‘‘(ii) may replace the administering

14 organization with another qualified tech15 nical or building code organization, pursu16 ant to competitive procedures, if the Sec17 retary determines in writing that the ad18 ministering organization is not fulfilling

19 the terms of the agreement or contract to

20 which the administering organization is

21 subject or upon the expiration of the

22 agreement or contract.

23 ‘‘(3) CONSENSUS COMMITTEE.—

24 ‘‘(A) PURPOSE.—There is established a

25 committee to be known as the ‘consensus com-
11

S 1452 ES

1 mittee’, which shall function as a single com2 mittee, and which shall, in accordance with this

3 title—

4 ‘‘(i) provide periodic recommendations

5 to the Secretary to adopt, revise, and inter6 pret the Federal manufactured housing

7 construction and safety standards in ac8 cordance with this subsection;

9 ‘‘(ii) provide periodic recommenda10 tions to the Secretary to adopt, revise, and

11 interpret the procedural and enforcement

12 regulations, including regulations speci13 fying the permissible scope and conduct of

14 monitoring in accordance with this sub15 section; and

16 ‘‘(iii) be organized and carry out its

17 business in a manner that guarantees a

18 fair opportunity for the expression and

19 consideration of various positions and for

20 public participation.

21 ‘‘(B) MEMBERSHIP.—The consensus com22 mittee shall be composed of—

23 ‘‘(i) 21 voting members appointed by

24 the Secretary, after consideration of the

25 recommendations of the administering or-
12

S 1452 ES

1 ganization under paragraph (2)(A)(ii)(I),

2 from among individuals who are qualified

3 by background and experience to partici4 pate in the work of the consensus com5 mittee; and

6 ‘‘(ii) 1 nonvoting member appointed

7 by the Secretary to represent the Secretary

8 on the consensus committee.

9 ‘‘(C) DISAPPROVAL.—The Secretary shall

10 state, in writing, the reasons for failing to ap11 point under subparagraph (B)(i) of this para12 graph any individual recommended by the ad13 ministering organization under paragraph

14 (2)(A)(ii)(I).

15 ‘‘(D) SELECTION PROCEDURES AND RE16 QUIREMENTS.—Each member of the consensus

17 committee shall be appointed in accordance

18 with selection procedures, which shall be based

19 on the procedures for consensus committees

20 promulgated by the American National Stand21 ards Institute (or successor organization), ex22 cept that the American National Standards In23 stitute interest categories shall be modified for

24 purposes of this paragraph to ensure equal rep-
13

S 1452 ES

1 resentation on the consensus committee of the

2 following interest categories:

3 ‘‘(i) PRODUCERS.—Seven producers or

4 retailers of manufactured housing.

5 ‘‘(ii) USERS.—Seven persons rep6 resenting consumer interests, such as con7 sumer organizations, recognized consumer

8 leaders, and owners who are residents of

9 manufactured homes.

10 ‘‘(iii) GENERAL INTEREST AND PUB11 LIC OFFICIALS.—Seven general interest

12 and public official members.

13 ‘‘(E) BALANCING OF INTERESTS.—

14 ‘‘(i) IN GENERAL.—In order to

15 achieve a proper balance of interests on

16 the consensus committee, the Secretary, in

17 appointing the members of the consensus

18 committee—

19 ‘‘(I) shall ensure that all directly

20 and materially affected interests have

21 the opportunity for fair and equitable

22 participation without dominance by

23 any single interest; and

24 ‘‘(II) may reject the appointment

25 of any 1 or more individuals in order
14

S 1452 ES

1 to ensure that there is not dominance

2 by any single interest.

3 ‘‘(ii) DOMINANCE DEFINED.—In this

4 subparagraph, the term ‘dominance’ means

5 a position or exercise of dominant author6 ity, leadership, or influence by reason of

7 superior leverage, strength, or representa8 tion.

9 ‘‘(F) ADDITIONAL QUALIFICATIONS.—

10 ‘‘(i) FINANCIAL INDEPENDENCE.—An

11 individual appointed under subparagraph

12 (D)(ii) may not have—

13 ‘‘(I) a significant financial inter14 est in any segment of the manufac15 tured housing industry; or

16 ‘‘(II) a significant relationship to

17 any person engaged in the manufac18 tured housing industry.

19 ‘‘(ii) POST-EMPLOYMENT BAN.—An

20 individual appointed under clause (ii) or

21 (iii) of subparagraph (D) shall be subject

22 to a ban disallowing compensation from

23 the manufactured housing industry during

24 the 1-year period beginning on the last day
15

S 1452 ES

1 of membership of that individual on the

2 consensus committee.

3 ‘‘(G) MEETINGS.—

4 ‘‘(i) NOTICE; OPEN TO PUBLIC.—The

5 consensus committee shall provide advance

6 notice of each meeting of the consensus

7 committee to the Secretary and cause to be

8 published in the Federal Register advance

9 notice of each such meeting. All meetings

10 of the consensus committee shall be open

11 to the public.

12 ‘‘(ii) REIMBURSEMENT.—Members of

13 the consensus committee in attendance at

14 meetings of the consensus committee shall

15 be reimbursed for their actual expenses as

16 authorized by section 5703 of title 5,

17 United States Code, for persons employed

18 intermittently in Government service.

19 ‘‘(H) INAPPLICABILITY OF OTHER LAWS.—

20 ‘‘(i) ADVISORY COMMITTEE ACT.—The

21 consensus committee shall not be consid22 ered to be an advisory committee for pur23 poses of the Federal Advisory Committee

24 Act.
16

S 1452 ES

1 ‘‘(ii) TITLE 18.—The members of the

2 consensus committee shall not be subject

3 to section 203, 205, 207, or 208 of title

4 18, United States Code, to the extent of

5 their proper participation as members of

6 the consensus committee.

7 ‘‘(iii) ETHICS IN GOVERNMENT ACT

8 OF 1978.—

9 ‘‘(I) IN GENERAL.—Subject to

10 subclause (II), the Ethics in Govern11 ment Act of 1978 (5 U.S.C. App.)

12 shall not apply to members of the con13 sensus committee to the extent of

14 their proper participation as members

15 of the consensus committee.

16 ‘‘(II) FINANCIAL DISCLOSURE.—

17 The Secretary shall collect from each

18 member of the consensus committee

19 the financial information required to

20 be disclosed under section 102 of the

21 Ethics in Government Act of 1978 (5

22 U.S.C. App.). Notwithstanding section

23 552 of title 5, United States Code,

24 such information shall be confidential

25 and shall not be disclosed to any per-
17

S 1452 ES

1 son, unless such disclosure is deter2 mined to be necessary by—

3 ‘‘(aa) the Secretary;

4 ‘‘(bb) the Chairman or

5 Ranking Member of the Com6 mittee on Banking, Housing, and

7 Urban Affairs of the Senate; or

8 ‘‘(cc) the Chairman or

9 Ranking Member of the Com10 mittee on Banking and Financial

11 Services of the House of Rep12 resentatives.

13 ‘‘(III) PROHIBITION ON GIFTS

14 FROM OUTSIDE SOURCES.—

15 ‘‘(aa) IN GENERAL.—Sub16 ject to item (bb), an individual

17 who is a member of the con18 sensus committee may not solicit

19 or accept a gift of services or

20 property (including any gratuity,

21 favor, discount, entertainment,

22 hospitality, loan, forbearance, or

23 other item having monetary

24 value), if the gift is solicited or

25 given because of the status of
18

S 1452 ES

1 that individual as a member of

2 the consensus committee.

3 ‘‘(bb) EXCEPTIONS.—The

4 Secretary shall by regulation es5 tablish such exceptions to item

6 (aa) as the Secretary determines

7 to be appropriate, which shall in8 clude an exception for de mini9 mus gifts.

10 ‘‘(I) ADMINISTRATION.—The consensus

11 committee and the administering organization

12 shall—

13 ‘‘(i) operate in conformance with the

14 procedures established by the American

15 National Standards Institute for the devel16 opment and coordination of American Na17 tional Standards; and

18 ‘‘(ii) apply to the American National

19 Standards Institute and take such other

20 actions as may be necessary to obtain ac21 creditation from the American National

22 Standards Institute.

23 ‘‘(J) STAFF AND TECHNICAL SUPPORT.—

24 The administering organization shall, upon the

25 request of the consensus committee—
19

S 1452 ES

1 ‘‘(i) provide reasonable staff resources

2 to the consensus committee; and

3 ‘‘(ii) furnish technical support in a

4 timely manner to any of the interest cat5 egories described in subparagraph (D) rep6 resented on the consensus committee, if—

7 ‘‘(I) the support is necessary to

8 ensure the informed participation of

9 the consensus committee members;

10 and

11 ‘‘(II) the costs of providing the

12 support are reasonable.

13 ‘‘(K) DATE OF INITIAL APPOINTMENTS.—

14 The initial appointments of all of the members

15 of the consensus committee shall be completed

16 not later than 90 days after the date on which

17 an administration agreement under paragraph

18 (2)(A) is completed with the administering or19 ganization.

20 ‘‘(4) REVISIONS OF STANDARDS AND REGULA21 TIONS.—

22 ‘‘(A) IN GENERAL.—Beginning on the date

23 on which all members of the consensus com24 mittee are appointed under paragraph (3), the
20

S 1452 ES

1 consensus committee shall, not less than once

2 during each 2-year period—

3 ‘‘(i) consider revisions to the Federal

4 manufactured home construction and safe5 ty standards and regulations; and

6 ‘‘(ii) submit to the Secretary in the

7 form of a proposed rule (including an eco8 nomic analysis), any proposed revised

standard or regulation approved by a 2 9 ⁄3

10 majority vote of the consensus committee.

11 ‘‘(B) PUBLICATION OF PROPOSED REVISED

12 STANDARDS AND REGULATIONS.—

13 ‘‘(i) PUBLICATION BY SECRETARY.—

14 The consensus committee shall provide a

15 proposed revised standard or regulation

16 under subparagraph (A)(ii) to the Sec17 retary who shall, not later than 30 days

18 after receipt, publish such proposed revised

19 standard or regulation in the Federal Reg20 ister for notice and comment. Unless

21 clause (ii) applies, the Secretary shall pro22 vide an opportunity for public comment on

23 such proposed revised standard or regula24 tion and any such comments shall be sub-
21

S 1452 ES

1 mitted directly to the consensus committee,

2 without delay.

3 ‘‘(ii) PUBLICATION OF REJECTED

4 PROPOSED REVISED STANDARDS AND REG5 ULATIONS.—If the Secretary rejects the

6 proposed revised standard or regulation,

7 the Secretary shall publish in the Federal

8 Register the rejected proposed revised

9 standard or regulation, the reasons for re10 jection, and any recommended modifica11 tions set forth.

12 ‘‘(C) PRESENTATION OF PUBLIC COM13 MENTS; PUBLICATION OF RECOMMENDED REVI14 SIONS.—

15 ‘‘(i) PRESENTATION.—Any public

16 comments, views, and objections to a pro17 posed revised standard or regulation pub18 lished under subparagraph (B) shall be

19 presented by the Secretary to the con20 sensus committee upon their receipt and in

21 the manner received, in accordance with

22 procedures established by the American

23 National Standards Institute.

24 ‘‘(ii) PUBLICATION BY THE SEC25 RETARY.—The consensus committee shall
22

S 1452 ES

1 provide to the Secretary any revisions pro2 posed by the consensus committee, which

3 the Secretary shall, not later than 7 cal4 endar days after receipt, publish in the

5 Federal Register a notice of the rec6 ommended revisions of the consensus com7 mittee to the standards or regulations, a

8 notice of the submission of the rec9 ommended revisions to the Secretary, and

10 a description of the circumstances under

11 which the proposed revised standards or

12 regulations could become effective.

13 ‘‘(iii) PUBLICATION OF REJECTED

14 PROPOSED REVISED STANDARDS AND REG15 ULATIONS.—If the Secretary rejects the

16 proposed revised standard or regulation,

17 the Secretary shall publish in the Federal

18 Register the rejected proposed revised

19 standard or regulation, the reasons for re20 jection, and any recommended modifica21 tions set forth.

22 ‘‘(5) REVIEW BY THE SECRETARY.—

23 ‘‘(A) IN GENERAL.—The Secretary shall

24 either adopt, modify, or reject a standard or
23

S 1452 ES

1 regulation, as submitted by the consensus com2 mittee under paragraph (4)(A).

3 ‘‘(B) TIMING.—Not later than 12 months

4 after the date on which a standard or regula5 tion is submitted to the Secretary by the con6 sensus committee, the Secretary shall take ac7 tion regarding such standard or regulation

8 under subparagraph (C).

9 ‘‘(C) PROCEDURES.—If the Secretary—

10 ‘‘(i) adopts a standard or regulation

11 recommended by the consensus committee,

12 the Secretary shall—

13 ‘‘(I) issue a final order without

14 further rulemaking; and

15 ‘‘(II) publish the final order in

16 the Federal Register;

17 ‘‘(ii) determines that any standard or

18 regulation should be rejected, the Secretary

19 shall—

20 ‘‘(I) reject the standard or regu21 lation; and

22 ‘‘(II) publish in the Federal Reg23 ister a notice to that effect, together

24 with the reason or reasons for reject-
24

S 1452 ES

1 ing the proposed standard or regula2 tion; or

3 ‘‘(iii) determines that a standard or

4 regulation recommended by the consensus

5 committee should be modified, the Sec6 retary shall—

7 ‘‘(I) publish in the Federal Reg8 ister the proposed modified standard

9 or regulation, together with an expla10 nation of the reason or reasons for the

11 determination of the Secretary; and

12 ‘‘(II) provide an opportunity for

13 public comment in accordance with

14 section 553 of title 5, United States

15 Code.

16 ‘‘(D) FINAL ORDER.—Any final standard

17 or regulation under this paragraph shall become

18 effective pursuant to subsection (c).

19 ‘‘(6) FAILURE TO ACT.—If the Secretary fails

20 to take final action under paragraph (5) with respect

21 to a proposed revised standard submitted by the

22 consensus committee under paragraph (4)(A) and to

23 publish notice of the action in the Federal Register

24 before the expiration of the 12-month period begin25 ning on the date on which the proposed revised
25

S 1452 ES

1 standard is submitted to the Secretary under para2 graph (4)(A)—

3 ‘‘(A) the proposed revised standard—

4 ‘‘(i) shall be considered to have been

5 adopted by the Secretary; and

6 ‘‘(ii) shall take effect upon the expira7 tion of the 180-day period that begins

8 upon the conclusion of such 12-month pe9 riod; and

10 ‘‘(B) not later than 10 days after the expi11 ration of such 12-month period, the Secretary

12 publish in the Federal Register a notice of the

13 failure of the Secretary to act, the revised

14 standard, and the effective date of the revised

15 standard, which notice shall be deemed to be an

16 order of the Secretary approving the revised

17 standard.

18 ‘‘(b) OTHER ORDERS.—

19 ‘‘(1) INTERPRETATIVE BULLETINS.—The Sec20 retary may issue interpretative bulletins to clarify

21 the meaning of any Federal manufactured home

22 construction and safety standard or procedural and

23 enforcement regulation. The consensus committee

24 may submit to the Secretary proposed interpretative

25 bulletins to clarify the meaning of any Federal man-
26

S 1452 ES

1 ufactured home construction and safety standard or

2 procedural and enforcement regulation.

3 ‘‘(2) REVIEW BY CONSENSUS COMMITTEE.—Be4 fore issuing a procedural or enforcement regulation

5 or an interpretative bulletin—

6 ‘‘(A) the Secretary shall—

7 ‘‘(i) submit the proposed procedural

8 or enforcement regulation or interpretative

9 bulletin to the consensus committee; and

10 ‘‘(ii) provide the consensus committee

11 with a period of 120 days to submit writ12 ten comments to the Secretary on the pro13 posed procedural or enforcement regulation

14 or the interpretative bulletin;

15 ‘‘(B) if the Secretary rejects any signifi16 cant comment provided by the consensus com17 mittee under subparagraph (A), the Secretary

18 shall provide a written explanation of the rea19 sons for the rejection to the consensus com20 mittee; and

21 ‘‘(C) following compliance with subpara22 graphs (A) and (B), the Secretary shall—

23 ‘‘(i) publish in the Federal Register

24 the proposed regulation or interpretative

25 bulletin and the written comments of the
27

S 1452 ES

1 consensus committee, along with the re2 sponse of the Secretary to those comments;

3 and

4 ‘‘(ii) provide an opportunity for public

5 comment in accordance with section 553 of

6 title 5, United States Code.

7 ‘‘(3) REQUIRED ACTION.—Not later than 120

8 days after the date on which the Secretary receives

9 a proposed regulation or interpretative bulletin sub10 mitted by the consensus committee, the Secretary

11 shall—

12 ‘‘(A) approve the proposal and publish the

13 proposed regulation or interpretative bulletin

14 for public comment in accordance with section

15 553 of title 5, United States Code; or

16 ‘‘(B) reject the proposed regulation or in17 terpretative bulletin and—

18 ‘‘(i) provide to the consensus com19 mittee a written explanation of the reasons

20 for rejection; and

21 ‘‘(ii) publish in the Federal Register

22 the proposed regulation and the written ex23 planation for the rejection.

24 ‘‘(4) EMERGENCY ORDERS.—If the Secretary

25 determines, in writing, that such action is necessary
28

S 1452 ES

1 in order to respond to an emergency that jeopardizes

2 the public health or safety, or to address an issue on

3 which the Secretary determines that the consensus

4 committee has not made a timely recommendation,

5 following a request by the Secretary, the Secretary

6 may issue an order that is not developed under the

7 procedures set forth in subsection (a) or in this sub8 section, if the Secretary—

9 ‘‘(A) provides to the consensus committee

10 a written description and sets forth the reasons

11 why emergency action is necessary and all sup12 porting documentation; and

13 ‘‘(B) issues the order and publishes the

14 order in the Federal Register.

15 ‘‘(5) CHANGES.—Any statement of policies,

16 practices, or procedures relating to construction and

17 safety standards, regulations, inspections, moni18 toring, or other enforcement activities that con19 stitutes a statement of general or particular applica20 bility to implement, interpret, or prescribe law or

21 policy by the Secretary is subject to subsection (a)

22 or this subsection. Any change adopted in violation

23 of subsection (a) or this subsection is void.’’;

24 (2) in subsection (d), by adding at the end the

25 following: ‘‘Federal preemption under this subsection
29

S 1452 ES

1 shall be broadly and liberally construed to ensure

2 that disparate State or local requirements or stand3 ards do not affect the uniformity and comprehen4 siveness of the standards promulgated under this

5 section nor the Federal superintendence of the man6 ufactured housing industry as established by this

7 title. Subject to section 605, there is reserved to

8 each State the right to establish standards for the

9 stabilizing and support systems of manufactured

10 homes sited within that State, and for the founda11 tions on which manufactured homes sited within

12 that State are installed, and the right to enforce

13 compliance with such standards.’’;

14 (3) by striking subsection (e);

15 (4) in subsection (f), by striking the subsection

16 designation and all of the matter that precedes para17 graph (1) and inserting the following:

18 ‘‘(e) CONSIDERATIONS IN ESTABLISHING AND IN19 TERPRETING STANDARDS AND REGULATIONS.—The con20 sensus committee, in recommending standards, regula21 tions, and interpretations, and the Secretary, in estab22 lishing standards or regulations or issuing interpretations

23 under this section, shall—’’;

24 (5) by striking subsection (g);
30

S 1452 ES

1 (6) in the first sentence of subsection (j), by

2 striking ‘‘subsection (f)’’ and inserting ‘‘subsection

3 (e)’’; and

4 (7) by redesignating subsections (h), (i), and

5 (j), as subsections (f), (g), and (h), respectively.

6 SEC. 5. ABOLISHMENT OF NATIONAL MANUFACTURED

7 HOME ADVISORY COUNCIL; MANUFACTURED

8 HOME INSTALLATION.

9 (a) IN GENERAL.—Section 605 (42 U.S.C. 5404) is

10 amended to read as follows:

11 ‘‘SEC. 605. MANUFACTURED HOME INSTALLATION.

12 ‘‘(a) PROVISION OF INSTALLATION DESIGN AND IN13 STRUCTIONS.—A manufacturer shall provide with each

14 manufactured home, design and instructions for the in15 stallation of the manufactured home that have been ap16 proved by a design approval primary inspection agency.

17 ‘‘(b) MODEL MANUFACTURED HOME INSTALLATION

18 STANDARDS.—

19 ‘‘(1) PROPOSED MODEL STANDARDS.—Not later

20 than 18 months after the date on which the initial

21 appointments of all of the members of the consensus

22 committee are completed, the consensus committee

23 shall develop and submit to the Secretary proposed

24 model manufactured home installation standards,

25 which shall be consistent with—
31

S 1452 ES

1 ‘‘(A) the manufactured home designs that

2 have been approved by a design approval pri3 mary inspection agency; and

4 ‘‘(B) the designs and instructions for the

5 installation of manufactured homes provided by

6 manufacturers under subsection (a).

7 ‘‘(2) ESTABLISHMENT OF MODEL STAND8 ARDS.—Not later than 12 months after receiving the

9 proposed model standards submitted under para10 graph (1), the Secretary shall develop and establish

11 model manufactured home installation standards,

12 which shall be consistent with—

13 ‘‘(A) the manufactured home designs that

14 have been approved by a design approval pri15 mary inspection agency; and

16 ‘‘(B) the designs and instructions for the

17 installation of manufactured homes provided by

18 manufacturers under subsection (a).

19 ‘‘(3) FACTOR FOR CONSIDERATION.—

20 ‘‘(A) CONSENSUS COMMITTEE.—In devel21 oping the proposed model standards under

22 paragraph (1), the consensus committee shall

23 consider the factor described in section

24 604(e)(4).
32

S 1452 ES

1 ‘‘(B) SECRETARY.—In developing and es2 tablishing the model standards under paragraph

3 (2), the Secretary shall consider the factor de4 scribed in section 604(e)(4).

5 ‘‘(c) MANUFACTURED HOME INSTALLATION PRO6 GRAMS.—

7 ‘‘(1) PROTECTION OF MANUFACTURED HOUS8 ING RESIDENTS DURING INITIAL PERIOD.—During

9 the 5-year period beginning on the date of enact10 ment of the Manufactured Housing Improvement

11 Act of 2000, no State or manufacturer may estab12 lish or implement any installation standards that, in

13 the determination of the Secretary, provide less pro14 tection to the residents of manufactured homes than

15 the protection provided by the installation standards

16 in effect with respect to the State or manufacturer,

17 as applicable, on the date of enactment of the Manu18 factured Housing Improvement Act of 2000.

19 ‘‘(2) ENFORCEMENT OF INSTALLATION STAND20 ARDS.—

21 ‘‘(A) ESTABLISHMENT OF INSTALLATION

22 PROGRAM.—Not later than the expiration of the

23 5-year period described in paragraph (1), the

24 Secretary shall establish an installation pro25 gram that meets the requirements of paragraph
33

S 1452 ES

1 (3) for the enforcement of installation stand2 ards in each State described in subparagraph

3 (B) of this paragraph.

4 ‘‘(B) IMPLEMENTATION OF INSTALLATION

5 PROGRAM.—Beginning on the expiration of the

6 5-year period described in paragraph (1), the

7 Secretary shall implement the installation pro8 gram established under subparagraph (A) in

9 each State that does not have an installation

10 program established by State law that meets

11 the requirements of paragraph (3).

12 ‘‘(C) CONTRACTING OUT OF IMPLEMENTA13 TION.—In carrying out subparagraph (B), the

14 Secretary may contract with an appropriate

15 agent to implement the installation program es16 tablished under that subparagraph, except that

17 such agent shall not be a person or entity other

18 than a government, nor an affiliate or sub19 sidiary of such a person or entity, that has en20 tered into a contract with the Secretary to im21 plement any other regulatory program under

22 this title.

23 ‘‘(3) REQUIREMENTS.—An installation program

24 meets the requirements of this paragraph if it is a
34

S 1452 ES

1 program regulating the installation of manufactured

2 homes that includes—

3 ‘‘(A) installation standards that, in the de4 termination of the Secretary, provide protection

5 to the residents of manufactured homes that

6 equals or exceeds the protection provided to

7 those residents by—

8 ‘‘(i) the model manufactured home in9 stallation standards established by the Sec10 retary under subsection (b)(2); or

11 ‘‘(ii) the designs and instructions pro12 vided by manufacturers under subsection

13 (a), if the Secretary determines that such

14 designs and instructions provide protection

15 to the residents of manufactured homes

16 that equals or exceeds the protection pro17 vided by the model manufactured home in18 stallation standards established by the Sec19 retary under subsection (b)(2);

20 ‘‘(B) the training and licensing of manu21 factured home installers; and

22 ‘‘(C) inspection of the installation of manu23 factured homes.’’.

24 (b) CONFORMING AMENDMENTS.—Section 623(c)

25 (42 U.S.C. 5422(c)) is amended—
35

S 1452 ES

1 (1) in paragraph (10), by striking ‘‘and’’ at the

2 end;

3 (2) by redesignating paragraph (11) as para4 graph (13); and

5 (3) by inserting after paragraph (10) the fol6 lowing:

7 ‘‘(11) with respect to any State plan submitted

8 on or after the expiration of the 5-year period begin9 ning on the date of enactment of the Manufactured

10 Housing Improvement Act of 2000, provides for an

11 installation program established by State law that

12 meets the requirements of section 605(c)(3);’’.

13 SEC. 6. PUBLIC INFORMATION.

14 Section 607 (42 U.S.C. 5406) is amended—

15 (1) in subsection (a)—

16 (A) by inserting ‘‘to the Secretary’’ after

17 ‘‘submit’’; and

18 (B) by adding at the end the following:

19 ‘‘The Secretary shall submit such cost and

20 other information to the consensus committee

21 for evaluation.’’;

22 (2) in subsection (d), by inserting ‘‘, the con23 sensus committee,’’ after ‘‘public’’; and
36

S 1452 ES

1 (3) by striking subsection (c) and redesignating

2 subsections (d) and (e) as subsections (c) and (d),

3 respectively.

4 SEC. 7. RESEARCH, TESTING, DEVELOPMENT, AND TRAIN5 ING.

6 (a) IN GENERAL.—Section 608(a) (42 U.S.C.

7 5407(a)) is amended—

8 (1) in paragraph (2), by striking ‘‘and’’ at the

9 end;

10 (2) in paragraph (3), by striking the period at

11 the end and inserting a semicolon; and

12 (3) by adding at the end the following:

13 ‘‘(4) encouraging the government-sponsored

14 housing entities to actively develop and implement

15 secondary market securitization programs for the

16 FHA manufactured home loans and those of other

17 loan programs, as appropriate, thereby promoting

18 the availability of affordable manufactured homes to

19 increase homeownership for all people in the United

20 States; and

21 ‘‘(5) reviewing the programs for FHA manufac22 tured home loans and developing any changes to

23 such programs to promote the affordability of manu24 factured homes, including changes in loan terms,

25 amortization periods, regulations, and procedures.’’.
37

S 1452 ES

1 (b) DEFINITIONS.—Section 608 (42 U.S.C. 5407) is

2 amended by adding at the end the following:

3 ‘‘(c) DEFINITIONS.—In this section:

4 ‘‘(1) GOVERNMENT-SPONSORED HOUSING ENTI5 TIES.—The term ‘government-sponsored housing en6 tities’ means the Government National Mortgage As7 sociation of the Department of Housing and Urban

8 Development, the Federal National Mortgage Asso9 ciation, and the Federal Home Loan Mortgage Cor10 poration.

11 ‘‘(2) FHA MANUFACTURED HOME LOAN.—The

12 term ‘FHA manufactured home loan’ means a loan

13 that—

14 ‘‘(A) is insured under title I of the Na15 tional Housing Act and is made for the purpose

16 of financing alterations, repairs, or improve17 ments on or in connection with an existing

18 manufactured home, the purchase of a manu19 factured home, the purchase of a manufactured

20 home and a lot on which to place the home, or

21 the purchase only of a lot on which to place a

22 manufactured home; or

23 ‘‘(B) is otherwise insured under the Na24 tional Housing Act and made for or in connec25 tion with a manufactured home.’’.
38

S 1452 ES

1 SEC. 8. FEES.

2 Section 620 (42 U.S.C. 5419) is amended to read as

3 follows:

4 ‘‘SEC. 620. AUTHORITY TO COLLECT FEE.

5 ‘‘(a) IN GENERAL.—In carrying out inspections

6 under this title, in developing standards and regulations

7 pursuant to section 604, and in facilitating the acceptance

8 of the affordability and availability of manufactured hous9 ing within the Department, the Secretary may—

10 ‘‘(1) establish and collect from manufactured

11 home manufacturers a reasonable fee, as may be

12 necessary to offset the expenses incurred by the Sec13 retary in connection with carrying out the respon14 sibilities of the Secretary under this title,

15 including—

16 ‘‘(A) conducting inspections and moni17 toring;

18 ‘‘(B) providing funding to States for the

19 administration and implementation of approved

20 State plans under section 623, including rea21 sonable funding for cooperative educational and

22 training programs designed to facilitate uniform

23 enforcement under this title, which funds may

24 be paid directly to the States or may be paid

25 or provided to any person or entity designated

26 to receive and disburse such funds by coopera-
39

S 1452 ES

1 tive agreements among participating States,

2 provided that such person or entity is not other3 wise an agent of the Secretary under this title;

4 ‘‘(C) providing the funding for a noncareer

5 administrator within the Department to admin6 ister the manufactured housing program;

7 ‘‘(D) providing the funding for salaries and

8 expenses of employees of the Department to

9 carry out the manufactured housing program;

10 ‘‘(E) administering the consensus com11 mittee as set forth in section 604; and

12 ‘‘(F) facilitating the acceptance of the

13 quality, durability, safety, and affordability of

14 manufactured housing within the Department;

15 and

16 ‘‘(2) subject to subsection (e), use amounts

17 from any fee collected under paragraph (1) of this

18 subsection to pay expenses referred to in that para19 graph, which shall be exempt and separate from any

20 limitations on the Department regarding full-time

21 equivalent positions and travel.

22 ‘‘(b) CONTRACTORS.—In using amounts from any fee

23 collected under this section, the Secretary shall ensure

24 that separate and independent contractors are retained to

25 carry out monitoring and inspection work and any other
40

S 1452 ES

1 work that may be delegated to a contractor under this

2 title.

3 ‘‘(c) PROHIBITED USE.—No amount from any fee

4 collected under this section may be used for any purpose

5 or activity not specifically authorized by this title, unless

6 such activity was already engaged in by the Secretary

7 prior to the date of enactment of the Manufactured Hous8 ing Improvement Act of 2000.

9 ‘‘(d) MODIFICATION.—Beginning on the date of en10 actment of the Manufactured Housing Improvement Act

11 of 2000, the amount of any fee collected under this section

12 may only be modified—

13 ‘‘(1) as specifically authorized in advance in an

14 annual appropriations Act; and

15 ‘‘(2) pursuant to rulemaking in accordance with

16 section 553 of title 5, United States Code.

17 ‘‘(e) APPROPRIATION AND DEPOSIT OF FEES.—

18 ‘‘(1) IN GENERAL.—There is established in the

19 Treasury of the United States a fund to be known

20 as the ‘Manufactured Housing Fees Trust Fund’ for

21 deposit of amounts from any fee collected under this

22 section. Such amounts shall be held in trust for use

23 only as provided in this title.

24 ‘‘(2) APPROPRIATION.—Amounts from any fee

25 collected under this section shall be available for ex-
41

S 1452 ES

1 penditure only to the extent approved in advance in

2 an annual appropriations Act. Any change in the ex3 penditure of such amounts shall be specifically au4 thorized in advance in an annual appropriations Act.

5 ‘‘(3) PAYMENTS TO STATES.—On and after the

6 effective date of the Manufactured Housing Im7 provement Act of 2000, the Secretary shall continue

8 to fund the States having approved State plans in

9 the amounts which are not less than the allocated

10 amounts, based on the fee distribution system in ef11 fect on the day before such effective date.’’.

12 SEC. 9. DISPUTE RESOLUTION.

13 Section 623(c) (42 U.S.C. 5422(c)) is amended—

14 (1) by inserting after paragraph (11) (as added

15 by section 5(b) of this Act) the following:

16 ‘‘(12) with respect to any State plan submitted

17 on or after the expiration of the 5-year period begin18 ning on the date of enactment of the Manufactured

19 Housing Improvement Act of 2000, provides for a

20 dispute resolution program for the timely resolution

21 of disputes between manufacturers, retailers, and in22 stallers of manufactured homes regarding responsi23 bility for the correction or repair of defects in manu24 factured homes that are reported during the 1-year
42

S 1452 ES

1 period beginning on the date of installation; and’’;

2 and

3 (2) by adding at the end the following:

4 ‘‘(g) ENFORCEMENT OF DISPUTE RESOLUTION

5 STANDARDS.—

6 ‘‘(1) ESTABLISHMENT OF DISPUTE RESOLU7 TION PROGRAM.—Not later than the expiration of

8 the 5-year period beginning on the date of enact9 ment of the Manufactured Housing Improvement

10 Act of 2000, the Secretary shall establish a dispute

11 resolution program that meets the requirements of

12 subsection (c)(12) for dispute resolution in each

13 State described in paragraph (2) of this subsection.

14 ‘‘(2) IMPLEMENTATION OF DISPUTE RESOLU15 TION PROGRAM.—Beginning on the expiration of the

16 5-year period described in paragraph (1), the Sec17 retary shall implement the dispute resolution pro18 gram established under paragraph (1) in each State

19 that has not established a dispute resolution pro20 gram that meets the requirements of subsection

21 (c)(12).

22 ‘‘(3) CONTRACTING OUT OF IMPLEMENTA23 TION.—In carrying out paragraph (2), the Secretary

24 may contract with an appropriate agent to imple25 ment the dispute resolution program established
43

S 1452 ES

1 under paragraph (2), except that such agent shall

2 not be a person or entity other than a government,

3 nor an affiliate or subsidiary of such a person or en4 tity, that has entered into a contract with the Sec5 retary to implement any other regulatory program

6 under this title.’’.

7 SEC. 10. ELIMINATION OF ANNUAL REPORTING REQUIRE8 MENT.

9 The National Manufactured Housing Construction

10 and Safety Standards Act of 1974 (42 U.S.C. 5401 et

11 seq.) is amended—

12 (1) by striking section 626 (42 U.S.C. 5425);

13 and

14 (2) by redesignating sections 627 and 628 (42

15 U.S.C. 5426, 5401 note) as sections 626 and 627,

16 respectively.

17 SEC. 11. EFFECTIVE DATE.

18 The amendments made by this Act shall take effect

19 on the date of enactment of this Act, except that the

20 amendments shall have no effect on any order or interpre21 tative bulletin that is issued under the National Manufac22 tured Housing Construction and Safety Standards Act of

23 1974 (42 U.S.C. 5401 et seq.) and published as a pro24 posed rule pursuant to section 553 of title 5, United

25 States Code, on or before that date of enactment.
44

S 1452 ES

1 SEC. 12. SAVINGS PROVISIONS.

2 (a) STANDARDS AND REGULATIONS.—The Federal

3 manufactured home construction and safety standards (as

4 such term is defined in section 603 of the National Manu5 factured Housing Construction and Safety Standards Act

6 of 1974) and all regulations pertaining thereto in effect

7 on the day before the date of enactment of this Act shall

8 apply until the effective date of a standard or regulation

9 modifying or superseding the existing standard or regula10 tion that is promulgated under subsection (a) or (b) of

11 section 604 of the National Manufactured Housing Con12 struction and Safety Standards Act of 1974, as amended

13 by this Act.

14 (b) CONTRACTS.—Any contract awarded pursuant to

15 a Request for Proposal issued before the date of enact16 ment of this Act shall remain in effect until the earlier

17 of—

18 (1) the expiration of the 2-year period begin19 ning on the date of enactment of this Act; or

20 (2) the expiration of the contract term.

Passed the Senate May 4, 2000.

Attest:

Secretary.
106TH CONGRESS

2D SESSION S. 1452

AN ACT

To modernize the requirements under the National

Manufactured Housing Construction and SafetyStandards Act of 1974 and to establish a balanced consensus process for the development, revision, and interpretation of Federal constructionand safety standards for manufactured homes.